Whenever the board by resolution passed by a vote of two-thirds of all its members determines that the refunding of the whole or any portion of the bonded indebtedness will be of advantage to the district the board may refund the bonded indebtedness or any portion thereof and issue refunding bonds of the district therefor.
BondsRefunding
Section § 13281
If two-thirds of the board members agree, the district can pay off its current bond debt and replace it with new bonds. This process is called refunding and can involve all or part of the existing debt if it benefits the district.
board resolution two-thirds vote bonded indebtedness
Section § 13282
This law states that when refunding bonds are issued, it's not considered taking on new debt, so there's no need for voter approval. The governing board can also decide to pay off these bonds earlier than their due date if they choose, which should be detailed in the ordinance that approves the refunding bonds.
The issuance of refunding bonds shall not be construed as the incurring or increase of an indebtedness within the meaning of this division, and the approval of the voters is not required for the issuance of refunding bonds. The board may provide for the call and redemption of any or all of the bonds on any interest payment date prior to their fixed maturity in the ordinance authorizing the issuance of the refunding bonds.
refunding bonds new debt voter approval
Section § 13284
This law states that only the property within a special district can be taxed to pay back the principal and interest on any bonds that are issued specifically to refinance the district's debt.
Only the property in a special district is taxable for the payment of the principal and interest on any refunding bonds which are issued for the purpose of refunding any indebtedness of a special district.
special district property tax refunding bonds indebtedness refinancing
Section § 13285
This law section states that the rules for issuing refunding bonds are mainly governed by other specific articles of the Government Code, unless this article provides otherwise.
Except as provided in this article, matters pertaining to the issuance of refunding bonds under this chapter shall be governed by Article 9 (commencing with Section 53550) and Article 10 (commencing with Section 53570), Chapter 3, Part 1, Division 2, Title 5 of the Government Code.
refunding bonds issuance rules government code
Section § 13286
This section states that the money made from selling refunding bonds must be used solely to buy or pay off existing bonds, for which the refunding bonds were originally issued. The bonds can be bought back for no more than their face value and any interest that has accumulated, or for the call price, whichever is applicable.
The proceeds of the sale of refunding bonds shall be applied only to the purchase, or retirement at not more than par and accrued interest, or the call price, of the bonded indebtedness for which the refunding bonds were issued.
refunding bonds bond proceeds bond retirement
Section § 13287
Instead of selling new bonds to raise money to pay off old bonds, the board is allowed to directly exchange new refunding bonds for old ones. The exchange must be at a minimum value of the bond's face value plus any interest that has accrued.
In lieu of selling refunding bonds and using the proceeds to purchase or retire the bonds to be refunded, the board may exchange refunding bonds at not less than par and accrued interest for the bonds so refunded.
refunding bonds bond exchange exchange at par
Section § 13288
When a district's bonds are refunded, they're given to the district's treasurer. The treasurer marks them as canceled, noting whether they were exchanged or bought and at what price. The word 'canceled' and the cancellation date are also punched into both the bond and any attached coupons.
Whenever outstanding bonds are refunded they shall be surrendered to the treasurer of the district, who shall cancel them by endorsing on their face the manner in which the refunding was effected (whether by exchange or purchase, and the amount for which so purchased, if any) and by perforating through each bond and each coupon attached thereto the word “canceled” together with the date of cancellation.
outstanding bonds refund surrender
